Retroactive Grants. I put this together to document what I have done over the last few months regarding the compound protocol. When I did these things, I did not expect to get grants for them, so not 100% were focused directly at improving the protocol, rather I focused on understanding it.
Here’s a link to Some of the work done. (On excel)
- Compound Grants
- 85 Hours
- I started working on this program in December 2020. I pitched Robert Leshner the idea of having a grants multisig after reading his “call to action” post in comp.xyz. After a few trying to look over what kind of research opportunities were provided and referenced in the post, I tried my best to go over to see how much time each idea would take to study. I thought the best angle for me was the economic policy and comp distribution. After a heavy amount of research during my own personal time, I realized how much work was to be done to improve compound, and that plenty of groundbreaking and innovative research needed to be done.
- After a few posts in the forum I gathered some positive community feedback and learned some very important lessons, all while making some very important friends. Larry approached me a month or two in, and the rest is history.
- Monetary Policy
- 25 hours
- When I first started looking at compound, I thought that a great way to make markets “ideal” was to have a “fed”. This would be a large autonomous body that would borrow and lend, stake and collect comp in attempt to make the markets as efficient and “profitable” as possible. While this work was the basis that led to my understanding of the inner workings of compound, and after talking to Leshner about the idea, I saw that the idea of a monetary policy multisig was a few “defi summers” away. Nevertheless, it will be kept in my mind.
- Reserves Research
- 18 Hours
- I talked to some of my classmate who were also studying finance and asked them questions regarding the WACC, PE and some other financial metrics to view the compound protocol. It appeared to me that there was little precedence within the current academic and financial worlds to analyze decentralized financial institutions, or “self driving banks”. I tried my best to create a set of metrics in which to measure the performance of individual markets, and the protocol.
- COMP IRM
- 25 Hours
- A few years back I wrote a chapter in a book about on the affects that self driving cars would have on urban landscape. In my specific chapter, I learned and wrote about how street parking works, and how innovative cities like San Francisco price on street parking meters to maximize price and utility towards 80% capacity. This fascinated me because I realized that an ideal market must always has liquidity for new buyers, or lenders. When I first started learning about compound, I was immediately fascinated by the interest rate models. The biggest issue I saw at the time was the ccomp market. It made absolutely no sense to me. I decided to create an IRM for the ccomp market that will try to put UTIL at around 80%, all while maximizing efficiency and profitability, using new metrics I created on my own.
- COMP Folding
- 15 Hours
- Recursive lending is a problem (possibly) that compound has been quiet on. I decided to create my own framework to calculate recursive lending profitability, position sizes and comp distribution. I believe that this insight is important, because we need to analyses the possibilities of balance sheet expanding, monetary folding activities.